What makes ETH different
ETH combines a liquid perp market with ecosystem and beta exposure that may already exist elsewhere in a wallet. Funding should be read together with the account’s broader ETH and altcoin sensitivity.
The main ETH failure mode
A seemingly hedged funding trade can retain material ETH beta when the spot leg, collateral, or correlated alt exposure does not match the perp notional.
The wallet-level question
Is the proposed ETH leg genuinely neutral after collateral and correlated positions are included?
ETH funding decision checklist
Funding is peer-to-peer and settles hourly. The worked example below is arithmetic, not a live quote or return forecast.
| Check | What to verify |
|---|
| 1 | Map direct and correlated ETH beta |
| 2 | Review open interest and recent funding direction |
| 3 | Size for ETH volatility rather than headline APR |
| 4 | Recheck fees and slippage on both legs |
Worked example: at $10,000 oracle notional, an hourly funding rate of 0.01% implies a $1 payment for that interval before trading fees, slippage, and price PnL. Payment direction depends on the sign of the rate and the side of the position.